{"id":96753,"date":"2021-10-07T14:51:07","date_gmt":"2021-10-07T14:51:07","guid":{"rendered":"https:\/\/one.sightlinemg.com\/militarytimes\/uncategorized\/2021\/10\/07\/feds-threaten-big-fines-against-for-profits-schools-that-dupe-troops-veterans\/"},"modified":"2026-08-18T20:58:26","modified_gmt":"2026-08-18T20:58:26","slug":"feds-threaten-big-fines-against-for-profits-schools-that-dupe-troops-veterans","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/militarytimes\/education-transition\/2021\/10\/07\/feds-threaten-big-fines-against-for-profits-schools-that-dupe-troops-veterans\/","title":{"rendered":"Feds threaten big fines against for-profits schools that dupe troops, veterans"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.militarytimes.com\/news\/your-military\/2019\/12\/11\/veterans-group-applauds-u-of-phoenix-for-reaching-settlement-in-ftc-case-alleging-deceptive-ad\/\" target=\"_blank\">Federal Trade Commission<\/a> officials are vowing to crack down on \u201cshady\u201d recruiting tactics used on service members and veterans by <a href=\"https:\/\/www.militarytimes.com\/education-transition\/2021\/03\/10\/gi-bill-vets-may-be-less-attractive-to-for-profit-schools-under-new-law\/\" target=\"_blank\">for-profit colleges<\/a> with harsh new financial penalties for offenders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On Wednesday, the commission sent <a href=\"https:\/\/www.consumer.ftc.gov\/blog\/2021\/10\/profit-colleges-notice\" target=\"_blank\">notices to 70 of the largest for-profit colleges<\/a> alerting them of the potential for fines of more than $43,000 per offense for unfair or misleading recruiting tactics. Officials said the move comes in response to a 70 percent increase in complaints around education and recruiting issues between 2018 and 2020.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor too long, unscrupulous for-profit schools have preyed on students with impunity, facing no penalties when they defraud their students and drive them into debt,\u201d said FTC Chair Lina Khan said in a statement. \u201cThe FTC is resurrecting a dormant authority to deter wrongdoing and hold accountable bad actors who abuse students and taxpayers.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/education-transition\/2021\/10\/06\/changes-to-federal-loan-forgiveness-program-will-benefit-thousands-of-troops-vets-and-dod-workers\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP21278423535298.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Changes to federal loan forgiveness program will benefit thousands of troops, vets and DoD workers<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">The Public Service Loan Forgiveness program waives debts for workers who have 10 years experience in federal or non-profit posts and have been making regular loan payments.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Industry representatives decried the move as a baseless attack on their business model.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe FTC announcement includes no findings of wrongdoing at any for-profit institution,\u201d said Jason Altmire, president and CEO of Career Education Colleges and Universities. \u201cPublicly announcing that it is sending warning letters to 70 of the largest for-profit institutions arbitrarily impugns the integrity of institutions that are in full compliance with FTC regulations.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But commission officials in their announcement noted several recent high-profile settlements related to false claims of job placement and employment opportunities connected to for-profit degree programs. They insist the action is needed to rein in the industry and protect students, particularly service members and veterans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor-profit schools have had a strong incentive to enroll veterans because of the education benefits service members can use to pay for college,\u201d the commission\u2019s announcement stated. \u201cThis has led to aggressive targeting of servicemembers, veterans, and their families.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier this year, lawmakers included in an emergency COVID relief package an overhaul of to so-called 90\/10 rule, which requires colleges and universities to have at least 10 percent of their revenues derived from non-federal sources.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The idea behind the regulation is to ensure that for-profit institutions aren\u2019t funded solely by federal monies, but instead also include significant investment by students interested in furthering their education.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, under a loophole in federal statute, GI Bill benefits and Defense Department Tuition Assistance programs were not counted as federal dollars, despite being taxpayer-funded benefits. That incentivized schools to target those groups and their stable, reliable tuition money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The changes approved last spring undid that loophole, but FTC officials said that troops and veterans remain heavily targeted by the schools.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Industry officials say that\u2019s because those groups are more likely to seek out non-traditional college classes, to better match with their family and work schedules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Altmire said he was \u201csurprised that only for-profit institutions will be subjected to these [new] enhanced civil monetary penalties, while other bad actors under the FTC\u2019s jurisdiction will not be held to the same standard.\u201d<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/education-transition\/2021\/02\/10\/covid-relief-package-includes-major-change-in-for-profit-colleges-rules-on-gi-bill-benefits\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"157\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP_16301590846325-RESIZED.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">COVID relief package includes major change in for-profit colleges\u2019 rules on GI Bill benefits<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Congressional Democrats could change the so-called 90\/10 rule, a goal of some education advocates for years.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">But veterans advocates hailed the move.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cUp until today, veterans and service members have been seen as a gravy train for some of the worst schools in America, exploiting grandiose marketing schemes and even outright lies to keep investors happy,\u201d said William Hubbard, vice president at Veterans Education Success.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis changes all of that,\u201d he added. \u201cThis is the FTC declaring war on some of the worst schools in higher education. Students will have a greater chance of going to better schools without all the tricks up the sleeves of so many fly-by-night programs.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">FTC officials said the fines will be based on misleading claims related to \u201cthe career outcomes of their graduates, including whether a particular career field is in demand, the percentage of graduates who get jobs in their chosen field, whether the institution can help a graduate get a job, and the amount of money a graduate can expect to earn.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A full list of institutions that received warnings from the commission is available on <a href=\"https:\/\/www.ftc.gov\/system\/files\/attachments\/penalty-offenses-concerning-education\/higher_ed_notice_recipient_list.pdf\" target=\"_blank\">its web site<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Trade Commission officials said they have seen an increase in education complaints related to unfair recruiting practices.<\/p>\n","protected":false},"author":7,"featured_media":95214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":9,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"4":{"categories":["education-transition","veterans","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"education-transition"},"5":{"categories":["education-transition","veterans","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"education-transition"},"6":{"categories":["education-transition","veterans","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"education-transition"},"7":{"categories":["education-transition","veterans","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"education-transition"}}},"categories":[9,29,116,15,35,25,88],"tags":[8533],"coauthors":[3347],"class_list":["post-96753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education-transition","category-home","category-left-column","category-news","category-newsletters","category-veterans","category-your-military","tag-student-veterans"],"acf":{"subheadline":"","legacy_arc_id":"DLZWVRAKUFBJVJPJTGFLOCFT7Y","arc_canonical_url":"\/education-transition\/2021\/10\/07\/feds-threaten-big-fines-against-for-profits-schools-that-dupe-troops-veterans\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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